Token standards
Security token standards, in plain language.
A token standard is the rulebook format your security is written in. You do not need to read the code. What matters is whether that format enforces who may own your asset, and whether the issuer can act when something goes wrong.
- Standards compared
- 5
- What the platform uses
- ERC-3643
- Running since
- 2024
Why this matters for your asset
The standard decides what the security can refuse to do.
A token is a digital record that says who owns a unit of something. It lives on a blockchain, a shared database that many independent computers keep in sync, so no single party can quietly change it. A token standard is an agreed format for how that record behaves: how it is transferred, what it checks first, and who can intervene.
For an orchard, a building or a loan book, the question is not technical. It is legal and practical. Can a person who has not passed identity checks end up on your investor register? Can an investor in a country you may not sell to receive units? If an investor loses access, can the holding be restored to them? The standard you choose answers these questions before your lawyers do.
Five standards side by side
A fair summary of what each standard does on its own, without add-ons. Several can be extended with custom code, but every custom change is something your counsel and auditors must review.
| ERC-20 | ERC-721 | ERC-1155 | ERC-1400 | ERC-3643 | |
|---|---|---|---|---|---|
| What it represents | Identical, interchangeable units, like shares of one class or loyalty points | One unique item per token, like a single title or certificate | Many item types in one place, some interchangeable, some unique | Units of a security, which can be split into tranches | Units of a regulated security, linked to verified owners |
| Who can hold it | Anyone with an account | Anyone with an account | Anyone with an account | Holders who pass the issuer's transfer checks | Only investors whose identity has been verified and who meet the offering's rules |
| Transfer rules built in | None | None | None | Yes, a check before each transfer, logic left to the issuer | Yes, modular rules checked on every transfer |
| Investor identity | Not part of the standard | Not part of the standard | Not part of the standard | Not defined, handled outside the standard | Built in, through a reusable identity record (ONCHAINID) |
| Issuer controls (e.g. recovering lost access) | None | None | None | Forced transfers by a controller; recovery not standardised | Freeze, forced transfer and recovery of lost access, by authorised agents |
| Official standard status | Final (proposed 2015) | Final (proposed 2018) | Final (proposed 2018) | Proposal family, never finalised | Final (2023) |
| Best suited for | Payments, utility and loyalty units | Unique collectibles and single-item records | Games, tickets and large catalogues of items | Earlier security token projects already built on it | Regulated ownership of real assets |
Status refers to the Ethereum Improvement Proposal process, the public process through which Ethereum standards are agreed. Securities regulators do not certify token standards; they assess offerings and the people behind them.
Each standard, explained
One page per standard: what it is, where it is the right tool, and where it falls short for regulated ownership.
ERC-20
The original format for interchangeable units. Simple and widely supported, with no built-in view of who the holder is.
Read moreERC-721
One token, one unique item. A good fit for a single title, not for many investors sharing an asset.
Read moreERC-1155
Many item types in one place. Efficient for catalogues and games, with no ownership rules of its own.
Read moreERC-1400
An earlier security token family with tranches and document links. Influential, but never finalised.
Read moreERC-3643
The permissioned standard for regulated securities. Identity and rules are checked on every transfer. This is what the platform uses.
Read moreThe standard is the engine, not the product.
The platform uses ERC-3643 because it lets the rules for your asset live inside the security itself. You set the rules in the platform with your counsel.
This page is general information about public technical standards. It is not legal, tax or investment advice. The legal structure of any offering is confirmed and executed by qualified local counsel.
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